The UK Prudential Regulation Authority announces reorganisation of an insurance company and appointment of joint administrators for the insurance company
On 10 December 2013, the UK Prudential Regulation Authority announced that, upon application of the company, the High Court of Justice in London made an Administration Order under which reorganisation measures have been launched in respect of Millburn Insurance Company Limited. The Administration Order concerning the company in question has eg the following effects:
- Neil Mather and Christopher Morris are appointed as joint administrators of the company.
- The administration of the company according to the Order ends on the first anniversary of its commencement, unless the term is extended.
- During the period for which the Order is in force, all the company’s property goes into the custody of the joint administrators and the affairs, business and property of the company will be managed by the joint administrators.
- The company benefits from the protection of a statutory moratorium.
- The joint administrators have a duty to perform their functions as quickly and efficiently as is reasonably practicable and with regard to the interests of the company’s creditors as a whole.
- The joint administrators may end the administration and place the company into liquidation.
The UK has a compensation scheme (Financial Services Compensation Scheme), from which compensation may be paid to policyholders that fulfil the criteria in the Prudential Regulation Authority’s rulebook.
The Prudential Regulation Authority has announced the court decision on the basis of the Directive on the reorganisation and winding up of insurance undertakings.
This public notice by the Finnish Financial Supervisory Authority is based on section 15a of the Act on Foreign Insurance Companies (398/1995), as amended by Act 525/2008, and section 15b, as amended by Act 331/2004.